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Weekend volatility ‘expected’ at $22K level to hold

Bitcoin (BTC) rose above $23,000 again on August 6 as new analysis predicted a possible surge of 20% or more.

BTC/USD 1-Hour Candle Chart (Bitstamp). Source: TradingView

The daily chart gives the trader a target of $30,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing overnight once again sitting at the top of its established trading range.

After multiple attempts to break the resistance above the $23,500 range, the pair was still stuck in a stalemate at the time of writing, but hopes of a bullish continuation were already there.

“Expecting more volatility on Wknd,” on-chain monitor Resource Materials Indicators wrote in its latest piece. Twitter update On August 5th.

“If a bear market rally can push BTC above 25k there won’t be much friction to the 26k – 28k range. Losing the trend line will be bad for bullish hopes and dreams.

$28,000 is more than 20% above the current spot price and represents a nearly two-month high.

Material indicators include a chart showing a trendline sitting at $22,000 – around Bitcoin’s current realized price.

When key resistance was at $24,500, the chart raised further bid support immediately below the spot.

BTC/USD Buy and Sell Levels with Trendline (Binance). Source: Material Indicators/ Twitter

Weekend trading traditionally produces more volatile price action, due to lack of liquidity in exchange order books, which are dominated by retailers, while institutions and professionals stay away until the new trading week.

Analyzing the daily chart, meanwhile, popular trading account CROW entertained even higher levels, revealing plans to take profits at $30,000 until Bitcoin makes higher highs and higher lows.

“Weekend is range trading from fake outs,” said crypto trader Tony added.

“I like to spot a range and then play accordingly. Ranges are effective at spotting real breakouts or fake outs. You can play both.”

The monthly RSI hints at the start of a BTC price comeback

Turning to on-chain data, PlanB, creator of the stock-to-flow family of Bitcoin price models, flipped the relative strength index (RSI) performance bullish again.

Related: ‘Evidence of Madness’ Bitcoin Has Surrendered in the Last 2 Months – Analysis

The RSI is a core metric that shows how relatively overbought or oversold BTC is at a given price, and reached its all-time low in June.

Now rebounding, RSI could signal an end to the 2022 bear market, PlanB suggested.

August In a previous post on the 3rd, meanwhile, PlanB admitted that BTC/USD is still “well below” the stock-to-flow daily estimate, which is $83,475 as of August 6th, according to an automated calculator. S2F multiple.

The views and opinions expressed herein do not reflect the views of the authors and Cointelegraph.com. As every investment and trading move involves risk, you should conduct your own research when making a decision.